OR allow saving for rental deposit?

mummybiz5

Been reading on some horror stories about NRAM repo after only three missed payments - we need 6 months to save rental deposit and bankruptcy fee - is it realistic we will get this long?

mummybiz5

Can anyone clarify that the OR would not allow you to stop paying mortgage and save the mortgage payment for rental deposit?

tigerfeet2006

The experience on this board seems to be that they take at least six months, if not longer.

Also experience on here shows although it is not impossible to get a rental when BR it is extremely hard work and is very demoralising as you are turned down because of the BR on your file. It is definatly easier to rent before going BR.

If you don't then put the mortgage payments down on your SoA but make sure you say you are going to let the house go and put the money to one side, most OR's are understanding. Though I highly recommend going the rent then BR if you can.

mummybiz5

Wouldthe rental have to be no more than our mortage payment - it looks like we would be looking at a rent that was £80 more a month or so?

lisa.89

Hi

I have spoken to a number of organisations this week, who specilaise in BR. They said that rentals are a different market so as long as you are not renting a house that is too big for your family, you will be ok. We have one child and would like to have one more in future, so they said 3 bed should be fine for our family. It seems that they look at properties in local area via websites and paper to get an idea of rents.x

kepar

skylight wrote: »

No. Any monies after your BR "belong" to your OR and they wont neccessarily allow you to save it for any purpose.

Instead, I (personally) would stop paying the mortgage, save up NOW the money and allow the place to be repossessed and rent somewhere before BR. Mainly because the BR screws up your credit rating even more so you'll fail that for most letting agencies anyway! Get the 6 months saved and rent first and then go BR.

I see it different to that, in that when you go br the OR will agree to your mortgage. If you do not pay the mortgage that is your problem. But if you put the money to one side you can either use it as a deposit, or if you change your mind you can repay the mortgage shortfall. After agreeing the SOA, the OR is only interested in a change of circumstances which could affect you paying an IPA. I cannot see why put the mortgage to one side will interest him/her.

fermi

http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part7/part4/part_4.htm#31.7.87

31.7.87 Consideration of regional cost variations and rental deposits

Regional variations in the costs and availability of rented accommodation will need to be considered by the official receiver when calculating the reasonable domestic requirements of the bankrupt. As a result of the requirement to pay a deposit when entering a rental contract, it may be necessary to delay the commencement of an income payments agreement to enable the bankrupt to accumulate the necessary funds to make the deposit payment , this action in the long term being beneficial to the estate by increasing the funds available to be paid later under the IPA/IPO. However, any delay in commencement of the IPA/IPO must take in to account that an IPA has to be signed by the bankrupt and the official receiver or trustee prior to the date of discharge.

debtinfo

just to explain fermis post a bit.

If the IPA has started then they would probably not reduce it for 6 months to allow you to save up a rental amount as then the OR is losing out.

But if the IPA has not started yet then they can delay it starting for a period to allow you to save up. As the IPA runs for 36 months from the start when ever that start may be then the OR doesnot lose out and so should be more willing to do that.

The key point to take from this is that you need to make up your mind early on, do not delay or you will find your options shrinking, and speak to the OR with what you want to do as early in the process as possible